BRICS ALLIANCE: DEVELOPING ALTERNATIVE TO US-DOMINATED SWIFT

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BRICS Alliance Aiming to Challenge US-Dominated Payment Systems

The BRICS alliance, comprising Brazil, Russia, India, China, and South Africa, is actively working on the development of an alternative payment system to challenge the dominance of the US and Western-controlled SWIFT network. Led by Russia’s Central Bank Governor Elvira Nabiullina, the alliance aims to reduce dependency on the US dollar in global transactions by making local currencies the primary mode of trade.

Three things to know:

  1. Rising Need for SWIFT Alternative: The imposition of sanctions by the US and its allies has prompted BRICS to accelerate the creation of an alternative payment system. This move aims to shield member countries from financial restrictions and enhance economic sovereignty.

  2. US Dollar Exclusion: The BRICS alternative to SWIFT will exclude the US dollar from transactions, posing a significant challenge to the global dominance of the American currency. This shift could elevate local currencies within BRICS nations and bolster their economies.

  3. Political Implications: The development of a BRICS payment network signifies a shift in global economic power dynamics. Once operational, this system could reduce the influence of the US and Western nations on international trade, leading to a more multipolar world order.

Conclusion:

The initiative by the BRICS alliance to establish an alternative to the US-controlled SWIFT network underscores the growing desire for economic autonomy and decreased reliance on the US dollar. This development has important implications for the global economy, politics, and geopolitics, as it signals a potential shift in the balance of financial power and highlights the increasing assertiveness of emerging economies in shaping the future of international trade.



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